AFM121 Lecture Notes - Lecture 20: S.A.C. Capital Advisors, Stanley Druckenmiller, George Soros

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM121
• Professor: Garvin Blair

Document Summary

Doesn"t have to have a wide variety of investments. Use a lot more leverage, so can be a lot riskier but also more rewarding. Able to take speculative positions: able to short sell stock. Make money when the market is falling. Hedge funds were formed by alfred jones. Interested in financial models, but wasn"t convinced in their ability to consistently beat the market. Minimum net worth of m (not including house or retirement savings) Or earned at least ,000 in the past two years (,000 with a spouse) And a reasonable expectation of making the same in the future. Houses have not counted towards net worth since 2011. Guarantees a repayment of the initial investment. The return of your ppn depends on the performance of the underlying assets. It"s your right to get key information from these institutions. You make gains for the underlying asset which is the fund you invested in.